South Korea Devotes $450 Billion to National Chip Strategy

On May 13th, South Korea announced an ambitious plan to invest USD 451 billion into the country’s semiconductor industry over the next nine years. Companies involved in chips research and development will receive a 40 percent tax deduction, on top of an additional 6 percent tax remission granted to investments in related facilities. Samsung and SK Hynix, alongside 153 other companies surveyed by the Korea Semiconductor Industry Association, are to benefit from the government initiative. President Moon Jae-in commented that the “government will unite with companies to form a semiconductor powerhouse.” Following the news on Thursday, Samsung announced an increase of USD 150 billion into its system LSI and foundry businesses; SK Hynix said it considers doubling the company’s present foundry production capacity.